Many fund managers expect performance and investment decisions to be affected, while institutional investors expect to commit less to the UK, according to a poll carried out by private equity specialist Preqin.
- In the next 12 months, 19 percent of surveyed private capital fund managers expect their performance to be negatively impacted by Brexit, while 13 percent expect the impact to be positive. In the longer term, 9 percent expect Brexit to have a positive impact on performance, and 13 percent a negative impact.
- Almost a third (32 percent) of fund managers will look to invest less in the UK over the next 12 months, while 3 percent anticipate investing more. In the longer term, 14 percent each expect to increase and decrease their UK investments.
- Although 13 percent of hedge fund managers said that they thought it would be negative in the short term, 31 percent expected the impact of Brexit on performance to be positive. In the longer term, almost a quarter (23 percent) expect the impact to be positive, while no surveyed manager anticipated a negative impact.
- 21 percent of fund managers will look to make more investments in the UK over the next 12 months, and 13 percent will make more UK investments in the longer term. Just 11 percent will reduce their investments in the short term, and 8 percent will make fewer investments in the longer term.
- 30 percent of private capital investors think the impact of Brexit on performance is negative, while 12 percent think it is positive. Hedge fund investors are more optimistic; 22 percent think performance will be negatively impacted, but 35 percent think it will be positive.
- Less than 10 percent of investors in both private capital and hedge funds think they are likely to invest more in the UK in both the shorter and longer term. Almost half (43 percent) of private capital investors expect to invest less in the UK in the next 12 months, and 31 percent in the longer term. Among hedge fund investors, those figures stand at 31 percent and 24 percent respectively.
- A quarter of private capital investors will also look to invest less in the EU over the next 12 months, while 6 percent think they are likely to invest more. Overall, though, 70 percent of alternative assets investors expect to maintain their EU investments in the short term, and three-quarters expect no change in the longer term.
- In the next 12 months, 2 percent of investors will look to invest with more UK-based alternative assets firms, while 24 percent think they are likely to invest with fewer. The same proportion expect to invest with fewer UK-based managers in the longer term, but no surveyed investor anticipates increasing investment with UK managers as a result of Brexit.